Tether Releases Stablecoin Backed By Offshore Chinese Yuan
Tether has officially released stablecoin, its Chinese yuan-backed crypto, which it claims will operate on top of the Ethereum blockchain as an ERC-20 token.
In a brief blog, the stablecoin issuer noted that the new token, called CNH₮, is purportedly contracted with the yuan stored offshore.
“CNH represents a further expansion of Tether’s capabilities in facilitating the digital use of traditional currencies, such as US dollar (USDT) and euro (EURT),” the announcement stated.
Earlier, it was reported that Tether was intending to add a recent stablecoin controlled by yuan, also called as the renminbi.
As of then, Zhao Dong, the over the counter (OTC) trader and a shareholder in Tether’s federated exchange Bitfinix, believed that a stablecoin powered by offshore yuan could progressively surge the circulation of digital currency.
On Monday, Tether provided with a smart contract address for CNH₮, without giving any further details about their latest stablecoin. It is unclear which exchanges would be listed in the token, although in August, Dong stressed that his firm, RenrenBit, would support it.
Additionally, it is immediately unclear where exactly Tether is going to store the yuan. Dong told Coindesk last month that it will be stored in a bank located in Belgium.